Other information:
1. The partners Agler, Bell, and Colaw share profits and losses in the ratio of 6:3:1.
2. The noncash assets are sold for $140,000.
3. The liabilities are paid in full.
4. The remaining assets are distributed to the partners. Assume that if any partner has a capital deficiency, he will not be able to pay the amount owed to the partnership.

Instructions
Prepare the entries to record the liquidation of the ABC partnership.

Solution Preview

Partnership Liquidation
The balance sheet of the ABC partnership just prior to liquidation appears below: